P.M. Executive Briefing - Oct. 13
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DaimlerChrysler Acquires Detroit Diesel
DaimlerChrysler (DCX) announced it has completed its acquisition of engine maker Detroit Diesel Corp., effective Friday, merging its own acquisition subsidiary into Detroit Diesel.Detroit Diesel stock ceased to be traded on the New York Stock Exchange as of the close of business Thursday; outstanding shares of the common stock not held by Daimler were converted into the right to receive $23 per share in cash, without interest, the company said.
Detroit Diesel now joins several other heavy-truck related Daimler holdings, including Freightliner, Western Star and Sterling. Transport Topics
LA Transit Workers Turn Down MTA Offer
The United Transportation Union, representing Los Angeles' bus and rail operators, will give a formal rejection to the Metropolitan Transportation Authority's "last, best and final" contract offer at a negotiating session Friday, Reuters reports.The transit workers' strike stretched into a 27th day, and Roman Catholic Cardinal Roger Mahony urged the MTA and union to call in a federal mediator to settle the strike, the report said. Mahony expressed concern for the city's poor as well as small business owners, whom he said are most seriously affected by the strike, Reuters added. Transport Topics
Europe May See More Trucker Protests
European countries could see another round of blockades and strikes in upcoming weeks if truckers' demands for fewer working hours and lower fuel prices are not met, the Journal of Commerce Online reported Friday.A main point of conflict is a 1998 European Union directive that set a maximum workweek of 48 hours. Trucking was excluded from this ruling and EU members cannot come to an agreement over whether or not to extend the limit to company drivers and/or independent owner-operators, the story said.
Some trucking companies are also pushing for an end to the influx of drivers from Eastern Europe, the Journal added. Truckers from non-EU countries are quoting extremely low rates to get freight from points in the 15 EU nations, taking away from EU trucking companies' business. A black market is growing in several parts of Europe by which Eastern European drivers are being hired for 20% of the pay of EU truckers, usually without proper paperwork, the story said. As many as 20,000 illegal drivers operate on EU roads, the Journal said. Transport Topics
Rubber Manufacturers Association Wants Increased Tire Safety Standards
The Rubber Manufacturers Association called Thursday for better tire safety standards and an early reporting system for safety-related data.The finished rubber products industry trade association said it is committed to working with the National Highway Traffic Safety Administration to put these efforts in action as quickly as possible. It also expressed support for the tire and auto safety legislation recently passed by Congress. Transport Topics
EU Says "Not Now" Again on Tapping Reserves
The European Union has decided again to not tap into its strategic reserves, saying that for now such a move would only bring short-term relief, Bloomberg reported Friday.Brent crude oil on London's International Petroleum Exchange has been around 10-year highs over the past two days, reaching $35.50 per barrel Thursday. However, EU officials still feel the best course of action is to enter into dialogue with oil-producing nations, French Prime Minister Lionel Jospin said in the story. The EU leaders also prefer other options such as breaking up oil-distribution monopolies, promoting new sources of energy and expanding the rail network as ways to try to lower fuel costs, Bloomberg added. Transport Topics
Cheney Meets With Truckers on Campaign Stop
 Dick Cheney Bush-Cheney 2000 |
Republican vice presidential candidate Dick Cheney stopped at a truck stop Thursday to hear truckers' concerns over high fuel prices, the Associated Press reports.
As part of his campaign tour, Cheney had coffee and pie in a Lima, Ohio truck stop and listened to truck drivers as they told him how high fuel prices are eating into their way of making a living, the story said. Cheney expressed his view that the United States should focus on finding more domestic sources of oil rather than being dependent on foreign sources, AP said.
The Democratic presidential candidate, Vice President Al Gore, was instrumental in persuading President Clinton to re-lease oil from the Strategic Petroleum Reserve, a move long called for by many in the transportation industry, including the American Trucking Associations. Transport Topics
Urbanfetch.com Ceases Home Delivery Operations
Internet-based delivery firm Urbanfetch.com said Thursday it will shut down its home delivery operations in New York and London, Reuters reports. Urbanfetch.com, which promised to deliver almost anything directly to doorsteps within an hour, made the announcement just days after merger talks with rival online delivery service Kozmo.com broke down. Urbanfetch.com will focus on its city business-to-business delivery service, Urbanfetch Express, according to Reuters.Analysts suggest Urbanfetch failed because residents of major cities do not need to shop online, as stores are readily available to them, the story said. Transport Topics
PLM International Approves Partial Liquidation Distribution Plan
As part of the recently-announced sale of its trailer leasing operations to Marubeni America Corporation, PLM International's (PLM) board of directors has approved a plan of partial liquidation, the company said.Through that plan, the company will distribute $5 per share from the proceeds of the sale to shareholders of record on Oct. 22, to be paid Nov. 3.
PLM International is a management company serving customers in the transportation, industrial and commercial indus-tries. PLM also manages a portfolio of transportation and related equipment for about 60,000 third-party investors. Transport Topics
Expeditors International Expects to Beat Expectations
Expeditors International (EXPD), a Seattle-based global logistics firm, said recently it expects to exceed analysts' estimates for third-quarter earnings.Expeditors anticipates third-quarter earnings between 46-48 cents per diluted share, topping consensus estimates from I/B/E/S of 41 cents per share. The earnings report will be released Nov. 7, the company said.
The company attributed this success to increased activity in all trade lanes, better operational efficiency and increased interest income. Transport Topics
Headlines From Today's A.M. Briefing
- Oil Prices Linger Near 10-Year High
- British Embassy in Yemen Shaken by Explosion
- Boeing Nears Deal With UPS for Cargo Planes
- U.S. Economy: Prices Jump; Sales Strong
- Mideast, Oil Woes Hit Global Stocks
- CargoLifter Commits to North Carolina Sites
- Canacar Wants to Revoke MS Carriers' Mexico Permits
- Cummins May Restructure After Poor 3Q
- Next SPR Bid Round Amount Uncertain
- Simpson's Earnings Fall on Weak Truck Market
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